It’s a troubling end of 2008 for music site Project Playlist, to say the least. MySpace banned its widget last week following pressure from the major labels, and now Facebook has followed suit.The latter is possibly more of a problem for Project Playlist, given that more than 660,000 Facebook users had installed its application on their profiles. The social network has explained its decision thus:

“The Recording Industry Association of America (RIAA) initially contacted Facebook last summer requesting the removal of the Project Playlist application for copyright violation, and recently reopened those communications. We have forwarded the RIAA’s letters to Project Playlist so it can work directly with that organization and music labels on a resolution. In the meantime, the application must be removed to comply with the Facebook Platform Terms of Service. Our hope and expectation is that the parties can resolve their disagreements in a manner that satisfies the developer and copyright holder, that continues to offer a great experience to music fans, and that doesn’t discourage other developers from using Platform to share their creativity and test new ideas.”

Project Playlist may have signed its first major label licensing deal this week, with Sony Music Entertainment, but it’s still facing lawsuits from the other three majors, plus this determined RIAA campaign to scrub it from its most popular partner sites.

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